Future Apple iPhones, iPads could have 'Intel Inside'

A new report from Nikkei Asian Review reveals that Apple could be ditching the TSMC (Taiwan Semiconductor Manufacturing Company, Limited) manufactured A-series processors for Intel’s ARM-based chips. In other words, Apple could be looking at Intel to manufacture their A-series chipsets instead of TSMC, who is presently their mass manufacturer.

‘Intel, the world's largest chipmaker by revenue, announced earlier this month that it will license technology from British mobile chip designer ARM with the aim of securing more business from smartphone companies. LG Electronics will become the first smartphone company to adopt Intel chips following the ARM deal,’ reports Nikkei.

After Intel’s new licensing deal allows it to manufacture and sell ARM-based chipsets, Apple could be a potential buyer for its future devices. The report from Nikkei claims that this new tie-up between Apple and Intel could be seen in as little as two years. Apple is presently using Intel’s desktop processors for its Mac products.

The report cited analysts believing that Intel could supply a portion of A12 chipsets for iPhones in 2018. For now, TSMC will still remain the sole supplier of A10 and A11 chipsets for iPhones that will launch in 2016 and 2017 respectively.

"TSMC could face tough competition as soon as 2018 or 2019 as Intel is likely to gain orders from Apple by then," Samuel Wang, a veteran semiconductor analyst at research company Gartner, told the Nikkei Asian Review. "Intel has begun to engage with Apple and it aims to grab one or two top-tier customers from TSMC."

The move, in which Apple opts for Intel’s ARM chips, will also shift the production to the US, helping create additional jobs in the country.  

In another report, Apple is also said to be opting for Intel-based chips for their modems in select iPhone 7 models. This will help reduce the dependence of Apple on existing supplier Qualcomm.